Finance

Ongoing military conflict between the United States and Iran has sparked supply concerns along major Middle Eastern shipping routes, catapulting international energy benchmarks. West Texas Intermediate and Brent crude futures surged past the $100 per barrel mark, achieving multi-month highs. The compounding effects of high crude prices have trickled down to domestic consumers, pushing national average diesel prices to historic levels.

The 10-year U.S. Treasury note yield climbed toward 5%, reaching levels not seen since late 2023. Fixed-income markets encountered intensified selling pressure after the Treasury Department purchased $5.2 billion in long-term debt, missing its maximum $6 billion targets for the liquidity operation. Market participants continue to demand higher yields to hedge against widening government deficits and persistent inflationary catalysts.

Cryptocurrencies faced downward pressure as Bitcoin slid below the $77,000 threshold and Ethereum pulled back toward $2,500. The non-yielding asset class is dealing with headwinds as investors recalibrate their expectations for monetary policy, with the odds of a Federal Reserve interest rate hike next week climbing significantly due to hot wholesale data. Furthermore, geopolitical uncertainties have driven temporary demand away from volatile risk assets into safer options.